Commission Scale

[sp1999]

I am a new LSP for a new exclusive allstate agent. In my first month of selling, I have done 25 items. I am trying to figure out if I am being paid fairly. I get a base salary, it's not much but before taxes its about 1400 a month. My commission scale is as that I have to write 15k in premium to get back 10%. 12k-14k 8%.....9-12 6%....and under 9k is less then 5%.

I busted my ass this month and I won't get back more then $600 dollars in commission.

 

[unic.consulting]

I am a new LSP for a new exclusive allstate agent. In my first month of selling, I have done 25 items. I am trying to figure out if I am being paid fairly. I get a base salary, it's not much but before taxes its about 1400 a month. My commission scale is as that I have to write 15k in premium to get back 10%. 12k-14k 8%.....9-12 6%....and under 9k is less then 5%.

I busted my ass this month and I won't get back more then $600 dollars in commission.

So, according to your figures: You wrote about 10k in premiums (6% = 600). You are receiving $2000. That comes out to 20% commission. I do life and health, so I don't know for sure, but that sounds pretty good to me.

 

[VolAgent]

I believe Allstate agents currently get 10% on personal line items, excluding any bonuses. So, the agent is losing money on you anyway it goes. It looks like you wrote less than $10,000 in new business for the month? So the agent is paying you $2,000 and getting less than $1,000.

The only way that works long term is based on bonuses and renewals, but the agent is definitely losing money in the short term. Also, 25 items and less than $10,000 in premium means an average under $400 per item. Are you targeting renters or state minimum coverage? Bump up your average premium and you'll make more for the same effort too.

 

[sp1999]

I have earned over 10k in premium but under 15k, I have done a lot of renters policies, My agent makes us push them because he just wants the items to meet his goals.

 

[DSInsurance]

Oh captive companies and their goals Love being an Indy!!!!

 

[insurance1822]

The agent cares about "items" because that's how his bonus is determined. If I were you I would only worry about premium, because that's how your compensation is determined.

I'm not sure what your averages premiums are in your market so I can't speak to those numbers. Ultimately your soul will whittle away & you'll learn that Allstate is the most evil conniving company on this earth. They have most likely screwed your agent more times in the past then he can count & they will continue to do so. Soon life numbers and/or life appointments will fall onto your plate.

 

[Josh]

I have earned over 10k in premium but under 15k, I have done a lot of renters policies, My agent makes us push them because he just wants the items to meet his goals.

Coincidentally it's a good product too.

 

[F150]

you write a $200 a year renters policy, your boss probally makes $20, how much do YOU expect to make from that?

 

[Josh]

you write a $200 a year renters policy, your boss probally makes $20, how much do YOU expect to make from that?

At least $300. .

 

[VolAgent]

In short, you aren't going to get a lot of sympathy here.

Unless the bonuses are very strong, your boss is losing money on you for at least the first year. Writing more business will just increase the dollar loss, but may reduce the percentage loss.